There are many reasons why you should invest in real estate including steady cash flow, long term security, the ability to leverage funds and more.
Real estate | Img via Unsplash
Investing in real estate gives you the best opportunity to build credit and wealth provided that you invest properly and smartly. Here’s what makes investing in real estate is a smart choice.
Cash Flow
An important benefit you get from investing in real estate is its ability to generate cash flow. As you pay your mortgage and build equity, cash flow only strengthens over time. You’ll receive monthly income as rent cheques from your tenants; you just have to research a bit about your prospective tenants’ credit and payment histories.
Long Term Security
Investing in Real Estate is a long-term commitment as you have the ability to hold on to the property and wait until it appreciates. If you’re planning to acquire property make sure you invest your money with trusted property developers in Sri Lanka such as the likes of John Keells Properties.
Ability to leverage funds
It is difficult to afford a property in full. Leverage means that you can use other people’s money to help buy your property by means of bank loans, mortgage lenders or credit unions. Then, you can pay them back over time. This way you can own real estate holdings without denting your savings.
Protection against inflation
Typically, when the prices of goods and services increase home values and rent increase proportionately too. This means that your property investments can protect you financially as they are able to provide you with a rising monthly income when everything else increases in value.